Monday, October 31, 2011

Don't Blame China, Blame you - Consumption

You can blame Regan economics for letting loose the reigns that protected American jobs from shipping overseas. You see, the push for cheaper goods means the most expensive elements needs to be eliminated, that of course is labor costs. Wages are the single highest expense for any company (usually).

So the likes of Walmart or Target, or heck any big box retailer, is to pay their grunts minimum wage, reduces costs all around (hey, let's face it, many are masters at efficient production/delivery), and of course, import goods from overseas (it's way cheaper you see.)

At the end of the year, greedy executives will reap the rewards of million dollar profits with million dollar bonuses. forget the notion that this greed is unbridled and will never filter down to peasants, no, we've got a bigger problem.

The problem is ourselves. Stop blaming executives. Yes, we know, they make way too much money. But aren't they living the dream we're all pursuing? MORE MORE MORE? When is MORE enough? probably never unless you have some serious morals/upbringing.

I digress.

We all feel we're entitled to more and now we're jealous of those who have way too much (I think we're also pissed they exploit so much too....just saying.) BUT, it's our own demand for certain things that's fueling the problem. We all want nice things, we all want more money, and we all want to consume more. However, that cosumption needs to come at a better price.

we all want more but want to pay less.

that's the problem. our consumer attitude demands that goods be created elsewhere. american jobs are directly correlated to the demand for low cost goods. The need to remain competitive outweighs the long term consequences of job loss.

America's population doesn't grow by 20% each year, not even 10%. Yet, we import more and more each year from foreign countries, namely China.

Take a look at this graph for imports to California from China since 1997:

Each year other than the debacle in 2009 saw an increase between 10-20% year over year. That's a LOT of stuff coming in, and it's not slowing down.

So the answer to the problem of jobs and income? Well part of it is you, and what you demand, and the expectations you have to pay. Sure, regulations may help, but you need to demand for it first.

Can you handle it? Or do you insist on your cheap Disney junk and Jersey Shore shirts, or *fill in blank here*?

CCLegalgroup, a group of San Diego Bankruptcy Lawyers provided us with the stats, thanks.

How not to start a movement

don't flounder around making a mess and randomly demanding stupid items that make you look like a fool.

the occupy movement is not in fact a movement.... ok maybe it is, anything that can mobilize people around the country (and world) is a movement. but a movement also doesn't die right when it starts, and certainly has some element that's recognizable.

occupywall street does not have said items. in fact, it's hard to tell what they're about. Now, I'ma ll for reform, certainly, but I also know two things.

a) reform is hard because politicians who ultimately have the biggest role to play have the most to lose. they're largely funded by the same people OWS pickets against.
b) in order to change the politician you need to vote them out, but again, see above, all the money comes from people who want a particular viewpoint support and they'll get what they want, plus nobody poor votes (over generalization but you get the idea.)

The economy is so complex that joe plumber from arkansas walking up to washington to fight for his rights and entitlements is clueless how to impact the process.

stop being idiots, if you want change then start at the grassroots level and start educating people to make different choices. those choices probably mean changing consumer behvaior from everything ranging from goods to tv shows.

on the flip side if you're on the movement team, then actually have a centralized voice, some demands, anything! mobilize people towards single vision or goals. if everyone has their own agenda nothing gets done.

at the end of the day ows is going to cost taxpayers money, which is fine, if it accomplishes something it sets out to do. right now they don't know waht that is.

in my mind ows will fail. in this form at least.

but the next form that continues to build upon the disparity that's constantly growing, well that might stick....and that could break this whole thing loose.

as for now, wall street execs are laughing all the way to the bank.